Zomato fell 2.61% to Rs 83.95 after Competition Commission of India (CCI) announced a probe on Zomato and Swiggy for 'unfair' practices.
The CCI on 4 April 2022 ordered an investigation into alleged anti-competitive trade practices by food-ordering platforms Zomato and Swiggy. The order comes against the backdrop of complaints made by the National Restaurant Association of India (NRAI) against the food tech giants."The Commission is of the view that there exists a prima facie case with respect to some of the conduct of Zomato and Swiggy, which requires an investigation by the director general (DG), to determine whether the conduct of platforms have resulted in contravention of the provisions," the CCI noted.
NRAI had complained that Swiggy and Zomato were indulging in deep discounting, data masking, exorbitant commissions, and imposing price parity terms on restaurant partners.
The CCI has asked its director-general to submit a report on the matter in 60 days.
Zomato offers services like restaurants discovery and reviews, home delivery of food, online table reservation, and digital payments when dining out. It also works with restaurant partners to provide tools that enable them to engage and acquire more customers while empowering them with a last-mile delivery service and a one-stop procurement solution - Hyperpure, for ingredients and kitchen products.
On a consolidated basis, the food delivery company reported net loss of Rs 63.20 crore Rs 63.20 crore in Q3 December 2021 as against net loss of Rs 352.60 crore in Q3 December 2020. Net sales rose 82.47% to Rs 1,112 crore in Q3 December 2021 over Q3 December 2020.
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